Why getting a preapproval is a critical part of the home-buying process.
If you're planning to buy a home this year, you might have heard that getting preapproved is a necessary step to take before starting on your journey. Why is that the case? Is it still important in today's shifting market? The truth is, getting a preapproval letter from your lender is critical when it comes to searching for a home.
According to Freddie Mac, a preapproval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. Simply put, it is an official document that states the maximum amount that your lender is willing to lend you. This helps you understand your true price range, making it easier to search for homes since you'll know what you're approved for.
"Getting a preapproval letter from your lender is critical when it comes to searching for a home."
Plus, a preapproval lets the seller know that you're qualified to buy their house. The editor of Mortgage Reports explained that most sellers won't even consider an offer unless the buyer is preapproved at the right price point, which is why you should have your preapproval letter ready as soon as possible.
Every advantage that you can gain as a buyer is crucial in a constantly changing market. Also, having the guidance of a team of professionals such as a real estate adviser and trusted lender on your side is critical. They'll help make sure you're ready to put your best foot forward.
The bottom line is that getting preapproved for a mortgage helps you better understand what you can borrow and shows sellers you're serious about purchasing their home. If you want to have the tools to succeed as a homeowner in today's shifting market, call or email me. I look forward to hearing from you.